AUSTIN, Texas, Jan. 30, 2020 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com ) has closed two Commercial Property Assessed Clean Energy (C-PACE) transactions totaling $4.9 million with Ross Group, a Tulsa, Oklahoma-based commercial real estate owner and developer, to finance energy-saving building measures in the redevelopment of two properties into hotels in downtown Tulsa.
Ross Group secured $3.2 million in C-PACE financing for the recently completed renovation and conversion of the historic Tulsa Club building into a 90-room Hilton Curio hotel, in addition to $1.7 million in C-PACE financing for the construction of the 116-room Holiday Inn Express & Suites - Downtown Tulsa. The deals mark the first C-PACE transactions to close in Oklahoma.
"We are excited to be the first to bring C-PACE to the Oklahoma market as a new, low-cost financing tool that can help improve returns for sustainable development," said Mansoor Ghori, CEO of Petros PACE Finance. "These two projects demonstrate the role C-PACE can play in efforts to revitalize urban cores and we look forward to working with innovative Oklahoma developers like Ross Group."
Ross Group will use the funds for sustainable design elements, which were incorporated into the redevelopment of the two properties, including efficient heating, cooling, plumbing and lighting systems, along with building envelope improvements. The Tulsa Club's 1920s-era building was home to a prominent social club in the city, but sat vacant for years before its recent conversion into a hotel. The site of the Holiday Inn Express Downtown Tulsa was previously occupied by two older commercial buildings.
C-PACE is a relatively new financing tool for energy and water efficiency projects, which has grown quickly in recent years. As a low-cost, long-term permanent financing product secured as a property tax assessment, it provides developers with an alternative to mezzanine debt and equity that lowers overall capital costs and allows them to invest in higher efficiency building designs.
"Ross Group is committed to development practices that improve our community's infrastructure," said Warren Ross, Chairman and President of Ross Group. "C-PACE financing is a cost-effective financing tool to include in the capital stack of future developments that promote sustainability and economic development."
PACE Financial Servicing serves as the administrator of the Tulsa County, Oklahoma PACE program. Ross Group Construction Corporation is the owner and developer for the Tulsa Club Hotel – Curio by Hilton and the Holiday Inn Express & Suites - Downtown. Oklahoma marks the sixth state where Petros has closed the first C-PACE transaction and expands the firm's national footprint to eleven states and Washington, D.C.
About Petros PACE Finance
Petros PACE Finance, LLC is the national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values. Leadership has decades of executive-level experience in commercial lending and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com/.
SOURCE Petros PACE Finance, LLC